Written answers

Tuesday, 2 November 2021

Department of Employment Affairs and Social Protection

Social Welfare Eligibility

Photo of Holly CairnsHolly Cairns (Cork South West, Social Democrats)
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624. To ask the Minister for Employment Affairs and Social Protection her views on increasing the amount of capital excluded in the calculation of eligibility for the fuel allowance for persons on qualifying social assistance payments. [53374/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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The Fuel Allowance is a payment of €33.00 per week for 28 weeks (a total of €924 each year) from October to April, to 365,000 low income households, at an estimated cost of €300 million in 2021. The purpose of this payment is to assist these households with their energy costs. The allowance represents a contribution towards the energy costs of a household. It is not intended to meet those costs in full. Only one allowance is paid per household.

The criteria for Fuel Allowance are framed in order to direct the limited resources available to my Department in as targeted a manner as possible. It is important to note that all recipients of non-contributory social assistance payments are accepted as satisfying the means-test for fuel. People who are in receipt of a qualifying contributory payment must also satisfy a means test.

The standard capital means assessment rules for State Pension (Contributory) purposes apply to Fuel Allowance applicants who have capital. This allows for the disregard of the first €20,000 of capital that is assessed against an applicant.

A fuel applicant and members of his/her household may have a combined assessable income of up to €100.00 a week above the appropriate rate of State Pension Contributory (i.e., equivalent to capital/savings of €57,999) and qualify for a payment. This ensures that the fuel allowance payment goes to those who are more vulnerable to fuel poverty including those reliant on social protection payments for longer periods and who are unlikely to have additional resources of their own.

In Budget 2022 I announced that from January 2022 that the combined assessable income allowable will increase to €120 a week above the appropriate rate of State Pension Contributory (i.e., equivalent to capital/savings of €62,999).

Therefore, taking the above into consideration, any decision to further increase the fuel allowance means test by increasing the amount of capital that is disregarded could only be considered in the overall budgetary context and the availability of financial resources.

I hope this clarifies the matter for the Deputy.

Photo of Mick BarryMick Barry (Cork North Central, Solidarity)
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625. To ask the Minister for Employment Affairs and Social Protection the reason persons under 25 years of age who are living independently and are in emergency homeless accommodation are not entitled to the full rate of jobseeker's payments; if a commitment will be given to treat these cohorts in the same way as those who are in receipt of HAP or RAS; and if she will make a statement on the matter. [53402/21]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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Age related reduced rates for young Jobseekers allowance recipients were introduced in 2009 in line with other EU and OECD jurisdictions, to address the issue of high youth unemployment by incentivising them to participate in employment, education and training programmes. The rate of payment is €112.70 per week for young jobseekers aged between 18 and 24 year olds; however it increases to the maximum personal rate of €203 if they participate on an education or training programme. Furthermore, if they participate on the new Work Placement Experience Programme, their weekly rate is increased to €306.

In Budget 2022 I secured an increase of €5 per week in the core weekly social welfare payments which means that the weekly rate of payment for those young jobseekers on a reduced rate will increase to €117.70 from 3 January 2022. The weekly rate of WPEP will also increase to €311.

Reduced rates do not apply to Jobseekers under 25 years of age who have qualified children or those who were in care of the HSE immediately before they turned 18.

A person aged between 18 and 24 is also entitled to an exemption from the reduced rates if they are living independently of the family home and are in receipt of state housing supports. They must be in receipt of either rent supplement, housing assistance payment (HAP), Rent Accommodation Scheme (RAS), local authority housing or living permanently in accommodation provided by a local authority approved housing body to qualify for an exemption from the reduced rates. This exemption was introduced in Budget 2020 in recognition that the residual income of young people on age-related reduced rates after paying the minimum contribution payments on Rent Supplement, HAP and Local Authority Differential Rent was significantly lower than those aged 25 and over on other social assistance payments. The measure seeks to enable those young jobseekers in receipt of the specified State housing supports to retain their independent living by avoiding hardship and a loss of tenancy.

My Department engages in inter-agency responses to homelessness through its engagement with Tusla, the HSE and non-Government organisations to provide the necessary support to all vulnerable people including young people who are experiencing homelessness or are in insecure situations.

Young people in these circumstances should contact the Community Welfare Service in the local Intreo centre where they can access support under the Supplementary Welfare Allowance Scheme which may include supplements, depending on the specific circumstances involved.

I trust that this clarifies the position for the Deputy at this time.

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